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What Happens If the Economy Is at Its Long-Run Equilibrium

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What happens if the economy is at its long-run equilibrium and aggregate demand increases?


Definitions:

Effectiveness

Effectiveness refers to the degree to which a method, process, or activity achieves its intended outcome or result.

Fully Functioning

A term used in humanistic psychology to describe an individual who is living in alignment with their true self and potential.

Real Selves

The authentic version of an individual, embodying their true thoughts, feelings, and desires.

Ideal Selves

Represents an individual's conception of how they would like to be, encompassing aspirations, goals, and the standards one aims to achieve.

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